OPTION #6: MUTUAL FUNDS
A mutual fund allows you to pool your cash with other investors, potentially gain access to investments that might otherwise be out of your price range, and rely on the guidance of pros who know what they’re doing with your money. You hope.
“As with other equities, mutual funds are a good way to gain exposure to the market,” Palmer notes. “For long-term savings (10-plus years), the market is the best place for a good chunk of your investments, but you always want to watch for fees that can eat into your returns.”
The fees can be significant since the money is maintained and handled by a separate fund manager. Plus, you lose control of how and where your money goes. That’s why you need to trust your fund manager to know when to dump stocks that aren’t performing.